Wrigley Reports Record Quarterly Sales

The Wm. Wrigley Jr. Company announced a 14 percent gain in second quarter sales versus a year ago to a record $1.38 billion, the Company s highest sales quarter ever. Net earnings for the quarter of $0.61 per diluted share were up 20 percent or $0.10 from the year ago period. Second quarter sales increased by $172 million, or 14 percent, over the same quarter last year. Somewhat more than half of the sales gain was driven by shipment growth across all regions, particularly EMEAI and Asia, including the incremental contribution from the A. Korkunov chocolate acquisition in Russia.
In EMEAI (principally Europe), sales were $667 million, up $124 million or 23 percent versus a year ago. Russia and East Europe continued to lead the growth in the region with double-digit gains, with Orbit, as the #1 brand by far, driving the increase and notable contributions being made by Eclipse(R) and Juicy Fruit(R). Also reporting double-digit sales gains, were Poland and Spain, on the strength of the Orbit(R) brand, and Germany, driven by outstanding growth by Extra(R). In the U.K., although sales in the second quarter moderated from their strong first quarter pace, they were up for the first six months of 2007, recording their best first-half performance in three years. Sales increased nearly $26 million or 16 percent in Asia to $189 million on volume growth of 15 percent. In China, accelerating sales of Doublemint(R), Extra and TaTa(R) bubble gum helped drive strong double-digit sales growth in the second quarter, building on a similar performance in the first quarter. With its latest surge, Extra became the #2 gum brand in China, now trailing only Doublemint. North America net sales were $452 million, up three percent on a one percent volume decline, reflecting the impact of recent pricing changes.